The Scope Of Applicability Of Specific Contracts In The Gig Economy To Overcome The Challenges
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Category: General Law
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THE SCOPE OF APPLICABILITY OF SPECIFIC
CONTRACTS IN THE GIG ECONOMY TO OVERCOME THE
CHALLENGES
Ananya Singh, B.Sc. LLB, School of Law Forensic Justice and Policy Studies, National Forensic Sciences University, Gandhinagar, Gujarat
ABSTRACT
This study investigates the role of specific contracts in the ever-changing gig economy, aiming to tackle the challenges its participants face. The gig economy, unlike traditional economies, owes its emergence to advancing technology and global connectivity, which enable remote work across borders. Characterised by temporary and part-time positions filled by independent contractors and freelancers, the gig economy offers flexibility and autonomy. However, it lacks certain benefits and securities inherent in traditional employment structures. Stakeholders across the board—workers, employers, and service recipients—encounter challenges due to the sector's newness and lack of robust regulations. To fortify the gig economy's foundation and mitigate these challenges, the inclusion of specific contracts is proposed.
These contracts, outlined under the Indian Contract Act from Section 124 onwards, specify the rights and responsibilities of involved parties, providing a firm basis for agreements and safeguarding interests. This research aims to apply such specific contracts to strengthen the gig economy's resilience and instil confidence and security among its stakeholders.
Introduction of the gig economy, its stakeholders & its scope In today's swiftly evolving technological sphere, the adage "change is constant" holds true. As the demand for employment continues to surge, new pathways for job creation are emerging, with the gig economy standing out as a prominent example. This flexible approach to work offers opportunities to individuals from various backgrounds and skill levels. In this dynamic landscape, everyone has the chance to shape their professional journey according to their preferences and goals. The gig economy is made up of two words that is ‘gig’ and ‘economy’, the word gig specifically means the job or work which is to be performed for a specific period.
The word gig specifically encapsulates the entire meaning and the substance of the emerging economy, which means working for a shorter term or having project-based work, unlike the work infrastructure that the traditional economy offers. The expression "gig economy" refers to a labour market where freelance, contract, or temporary work is more widespread than traditional full-time employment. In this kind of economy, people frequently work independently on a project or "gig" basis, searching and fulfilling assignments or jobs for different clients or firms using digital platforms or apps. Sharing a ride, food delivery apps, graphic design, freelancing, and other on-demand businesses are a few examples. The gig economy offers workers flexibility and releases the pressure off the firms from creating long-term contracts to hire specialised expertise as needed.
“Strictly speaking, the notion of ‘gig’ work refers specifically to taskoriented or ‘piece’ work that is, where a worker receives payment for the performance of discrete and divisible single functions such as individual taxi journeys, goods deliveries or domestic tasks. This is in contrast to the scenario where the worker subjects herself generally to the directions or orders of an employer over an agreed period, as in the case of traditional wage labour. ”1 “Over the past decade, a rapid increase in the number of freelancing platforms and digital startups contributed to the growth of the ‘gig culture’. As of 2021, India has emerged as the 5th largest country for gig work, with the gig economy expected to grow at a CAGR of 17% by
2024. In the long term, the economy is expected to employ up to 90 million people and
1 Marc T. Moore, The gig economy: a hypothetical contract analysis.
contribute up to 1. 25% to the country’s GDP. ”2 In addition to that, A 2022 report by NITI Aayog estimates that nearly 23. 5 million workers will be engaged in the gig economy by 2029. 3 Primarily there are three major stakeholders present which are part of the gig economy these are workers, platforms/companies and clients/consumers. Workers: These are the individuals who provide their services or labour on a freelance or contract basis within the gig economy. Platform/Companies/Employer: These are the companies that operate the digital platforms connecting gig workers with consumers or clients. Consumers/Clients: Consumers are the individuals or businesses that utilize the services provided by gig workers through platform companies. There are many interesting features that the gig economy offers, such as a shift for good from the traditional economy.
The gig economy diverges from the traditional economy in its employment structure, job stability, flexibility, and benefits. In the traditional economy, longterm, full-time positions with a single employer are common, offering stability, predictable incomes, and benefits like healthcare and retirement plans. Conversely, the gig economy thrives on short-term or project-based work arrangements, where workers, often independent contractors or freelancers, are paid per task or project, providing them with flexibility in work hours and location but resulting in less job security and fewer benefits. While traditional jobs offer stability and employer-provided benefits, gig work allows for autonomy and control over one's schedule, albeit with greater income variability and the need for self-managed benefits and protections.
One such interesting feature of the gig economy is that it is not restrictive as this vast economy includes every possible sector whether it be high-skilled or low-skilled, organised or unorganised, platform-based or non-platform-based, the emerging economy has room for one and all. Software developers and data analysts are among the highly skilled personnel required to create and manage the digital infrastructure that enables meal delivery services. Low-skilled individuals can use these platforms to bring meals to customers and make money in the meantime, such as delivery drivers or bikers. This sector demonstrates the 2 The Asia Foundation, Challenges and Opportunities in the gig economy in a post-COVID world: Investigating the interactions between gig workers and platforms (August 2022).
3 Niti Aayog, India’s Booming Gig and Platform Economy: Perspectives and Recommendations on the Future of Work (Issued on June 2022).
inclusion of the gig economy across various organisational structures and skill levels by encompassing both the organised (platform-based) and unorganised (freelance delivery) parts. Despite its benefits, including flexibility and job creation, the gig economy poses challenges for its stakeholders, which will be addressed in the forthcoming articles. Review of Literature The author delved into a number of articles and papers in order to enhance the scope of this research of the study and reach to a better analysis. However, the author has chalked out two most relevant and intriguing articles which revolve around the idea attached to the author’s area of study in this paper. Analysing the Challenges, Effects, and Motivations of Gig Economy Workers4 This article primarily focuses on the challenges faced by gig economy workers and tries to derive the effects and motivations through it.
This article in its initial stages focuses on the introduction of the gig economy and the gig workers, describing the crux of the study which is that studies on the gig economy focus primarily on customer satisfaction and perceptions of these services, which can help companies in their sales and marketing efforts. However, studies have not been conducted on the importance of gig workers' roles, work-life balance, challenges, and internal management influence. Further, the study in this article primarily involves a small section of the ever-evolving sector i. e. food delivery workers, a semi-structured interview was used to identify the challenges and effects of gig delivery food riders.
Further, the observations are mentioned in a tabular format which highlights the major challenges faced by these gig workers, followed by an analysis of the effects of this type of work on their personal and societal well-being and the deriving factor involved in this for them to be a part of this sector. There are nine challenges listed in Table: income instability, road accidents, no compensation for death or hospitalization and vehicle damage, wrong location, dealing with anger and dissatisfaction among customers, limited time with family, sexual harassment, animal attack risk and Inactive work terminated after 6 months. 4 Salleh, N. M. , Shukry, S. N. M. , & Jokinol, V. M. C. (2023). Analyzing the Challenges, Effects, and Motivations of Gig Economy Workers. International Journal of Academic Research in Business and Social Sciences, 13(6), 2125 – 2142.
Most interviewees mentioned that income instability and the risk of road accidents were the main challenges in their daily work. This research article delves holistically into the challenges faced by the gig workers however it is restricted in its approach by just only inculcating a part of the gig economy that is only by analysing the challenges faced by the gig delivery food riders. Towards the end, it urges the government to initiate a proper HR management system in companies to support the gig economy. Furthermore, the article presents a gap by not providing a holistic legal solution to cater to the challenges faced by gig workers.
The author of the present article will be primarily focusing on the gig economy sector as a whole while considering the challenges and not just including a part of gig workers, as this industry resembles an umbrella which inculcates different and evolving profiles, so a restrictive approach will not be followed. In addition to that, the author will inculcate the legal solution to the challenges faced by the gig economy stakeholders through the application of specific contractual relationships amongst involved members. Future of Gig Economy: Opportunities and Challenges5 This article primarily discusses the current trends of the gig economy along with its merits and demerits in the global as well as the Indian context. This study also presents major trends in gig work and the skill set demanded by global clients.
Initially, the author delves into the scope of the gig economy and the gig workers. Further, this article is divided into 5 parts (i. e. A to E) by the author of the present article for ease of understanding. In Section A, an overview of existing research on the gig economy is presented, highlighting the key contributions made by scholars in this area. Section B delves into the evolving trends of the gig economy, particularly within the context of the Indian economy. Section C offers concise insights into the marketing and branding approaches employed within the gig economy. The discussion in Section D focuses on the opportunities within the gig economy, with a particular emphasis on its potential in the Indian market. Section E outlines the various challenges faced by participants in the gig economy.
Finally, the concluding section addresses implications and suggests avenues for future research. The challenges chalked out in Section E are a lack of laws in addressing gender 5 Gobinda Roy & Avinash K Shrivastava, (2020). Future of Gig Economy: Opportunities and Challenges, IMI Konnect, Vol. 9 (1).
discrepancies while getting gig work on online gig platforms, is lack of framework and governmental support for creating a conducive environment for quality work/projects, worker’s protection, and access to benefits as provided by traditional job, no guarantee of a steady income, no social safety net for the unemployed, challenge to employers in maintaining the confidentiality of data and obtaining intellectual property of the product/services rendered by the freelancers, the biggest challenge to most of the freelancers (experienced or novice) is to find consistent work on digital platform. Additionally, they face issues of payment protection after the successful delivery of work. The author of the present article primarily focused on section E of the abovementioned article.
Although the aforementioned article tried to holistically cover the subject, it lacks to answer the questions related to tackling the challenges arising in this type of economy. The direction of the research which the author of the present article has opted for is towards filling the gap of tackling the challenges arising in the gig economy by way of specific contracts. Research Problem and Questions The primary research question in this problem is identified as what could be the possible applicability arising in the gig economy towards the application of specific contracts in terms of resolving challenges occurring in this sector. • What is the positional market standing of the gig workers and under what classification do such workers fall? • What are the challenges faced by the stakeholders involved in this unorganised and unregulated economy?
• Discovering the challenges faced by the gig workers. • What is the scope of the legal framework, if any, to cater to such challenges? • If there is a lack of a centralised legal framework to govern such a sector, do the contracts between the parties involved in the gig transaction, pose enough safeguard to protect rights? • What is the role of specific contracts in terms of the gig economy to overcome the
challenges faced in this industry? • The application of the contract of indemnity • The application of the contract of the agency • The application of the contract of guarantee Objectives of Research To set out the objectives of this research the author centred on addressing the hurdles and discovering methods to enhance the growth of the gig economy through the implementation of specific contracts. • Analysing the nature of the work of the gig workers. • Finding out the potential challenges faced by the gig economy stakeholders. • Could these challenges be resolved through a specialized legal framework, if one exists, or could they be effectively mitigated solely through contractual relationships? • Applying the different specific contracts in order to resolve the key issues and challenges involved in this unorganised and unregulated sector.
Hypothesis Lack of a centralised legal framework to govern the challenges and safeguard the interest of stakeholders in the unregulated and unorganised gig economy • Determining the nature of work involved gig economy for easy identification of the challenges in such an economy Analysing the aspects of specific contracts to cater for the challenges and safeguarding the interest of the stakeholders in the gig economy and put forth a solution, to streamline this unregulated and unorganised sector towards regulated and organised. Scheme of Research
During the course of the research, various study materials were consulted to grasp two basic evolving ideas: the gig economy and specific contracts. Additionally, the study also involved examining the challenges within the gig economy. Furthermore, the research methodology included analysing various case laws to confirm the concepts used in this study. Research Method The research methodology involves a comprehensive analysis of existing literature and statistical data, supplemented by a thorough examination of relevant case law. Initially, a systematic review of academic publications, legal texts, and industry reports will be conducted to identify key themes, trends, and gaps in the literature. This multidimensional approach will facilitate a new understanding of the research topic and help achieve the set objectives.
Nature and classification of the gig workers As illustrated earlier the entire concept on which the gig economy is based is a temporary arrangement of specified work, which means that the gig economy lacks permanence, which is the reason for its increased involvement and engagement. Hence the nature of work that the gig workers are involved in are flexible short-term engagements. In September 2021, the Indian Federation of App-based Transport Workers (IFAT) initiated a public interest litigation on behalf of gig workers before the Supreme Court, urging for their classification as 'unorganised workers'. This move aimed to bring them under the protection of the Unorganised Workers' Social Security Act, 2008 (UWSS Act) to ensure statutory entitlements to social security benefits.
The petition argued that the exclusion of gig workers from this classification violated their fundamental rights under Articles 14 and 21 of the Constitution, and amounted to exploitation akin to forced labour as per Article 23. Despite the Supreme Court's request for a response from the Centre in December 2021, no such response has been received, and there have been no further hearings on the matter. Furthermore, there has been an age-old debate about the classification of gig workers in the water-tight compartments between independent contractors and employees. Somewhere this distinction plays a very important role in determining the liabilities and benefit reception involved between the stakeholders of the gig economy (Workers, Employers/Platforms, Consumers/clients).
In various jurisdictions, including India, determining whether an individual is an employee or an independent contractor typically relies on factors like the level of control by the employer and the parties' intentions6. Tests for this classification are evolving worldwide and may consider factors such as work manner, dismissal power, equipment ownership, contract titles, and rule prescriptions. Some jurisdictions, like Switzerland and France, classify gig workers as employees, while others, such as Brazil and Australia, view them as independent contractors. However, applying these tests to gig work often leads to inconsistent interpretations due to its unique nature. For example, in the evolving gig platforms like Blinkit the employer controls the complaint management, the salary of the delivery agents (worker), etc.
which shows characteristics of employee and employer relationship while on the other hand, the delivery executive selects their work assignments, can refuse a client or location, etc. which categorizes delivery executives as independent contractors. Treating gig workers as employees could burden aggregators with high costs while treating them as independent contractors could lead to exploitation. “Subsequently, finding it difficult to put these workers into one closed bracket owing to the nature of the work they perform, it would be the best alternative to mark the workers of these industries as hybrid workers which culminates the quality of independent contractors and employees. ”7 8 This approach would grant gig workers some employment rights and benefits, share liability between the hiring company and the worker, and require compliance with the company's guidelines.
This hybrid model aims to enhance gig workers' welfare by subjecting them to labour law and providing tangible rights and benefits. Unlike classifying gig workers as employees, this model would maintain the flexibility of gig work, ensuring the sustainability of aggregator economic models. In 2021, the UK Supreme Court9 ruled that Uber drivers should be classified as employees/workers of Uber rather than independent contractors, following a thorough assessment of various factors, including the control test. This decision is expected to have significant implications for businesses utilizing gig economy workers, as they may need to adjust their business models to accommodate the legal rights associated with worker
6 Sushilaben Indravadan Gandhi vs The New India Assurance Company Limited AIR 2020 SC 1977.
7 Sahaj Mathur, Labour Law and the Gig Economy: Towards a Hybrid Model of Employment.
8 Nupun Jalan, The Gig Economy: Navigating Legal Challenges In Classifying Workers As Independent
Contractors.
9 Uber BV and others v Aslam and others [2021] UKSC 5.
classification. One likely consequence is that these businesses may need to raise prices to cover the additional costs of engaging workers. However, many gig economy businesses rely on low prices as a fundamental aspect of their operations. In the Indian context, similar conclusions have not yet been reached, highlighting the need for specific contracts between gig stakeholders and the implementation of a dedicated legal framework to govern this evolving sector. Discovery of the challenges encountered in the gig industry Many researches have been conducted both qualitatively and quantitatively to determine the problems of the gig industry, especially the gig workers.
The major problems which is faced by gig workers in today’s scenario the income instability and job security, these two problems emerged as the winners among the many problems faced by gig workers such as lack of employment benefits, legal protections, no work-life balance, and no proper policy implications. Furthermore, as discussed earlier there are three major stakeholders of the gig economy the workers, the platforms/employers and the consumers/clients. The aforementioned problems only demonstrate the problems which are faced by gig workers but there are challenges which are faced by other stakeholders too such as gig employers/companies and the gig clients. The gig employers/platforms may face challenges like maintaining quality & consistency, reliability, commitment issues, maintaining confidentiality of data and legal considerations etc.
In addition to that the client may also face problems related to reliability, confidentiality etc. Analysis of existing legal framework to cater to such challenges Legal framework/ Legislation as the name suggests proposes a backbone or structure to the regulation of a particular sector. For example, for the smooth regulation and the functioning of the labour sector, we have the Industrial Disputes Act, of 1947, the Minimum Wages Act, of 1948, and the Employees' State Insurance Act, of 1948. The interesting feature of the legal framework is that they are like living structures which could be amended according to the needs of the present. Now as we can see ahead of us lies the future of the gig economy which is touching heights and in desperate need of a separate legal framework for the protection, regulation and proper functioning of the gig sector.
In 2020 new Labour Codes were introduced, out of four codes, Gig work is only mentioned in
the Code on Social Security under section 2(35), leaving gig workers excluded from benefits and protections provided by other codes such as minimum wages, occupational safety, health benefits, and overtime pay. Although the Code on Social Security defines gig workers, it doesn't offer specific benefits or protections, instead stating that the Central Government will notify schemes for gig workers in the future. Additionally, the new labour codes missed an opportunity to re-evaluate employment contracts and the distinction between employees and independent contractors, especially concerning gig work. Consequently, the labour codes fail to address the classification issues within the gig economy, neglecting to bring gig workers directly under the labour and employment regulations in India.
The lack of a specific sector makes it unorganised and unregulated which in turn raises a lot of problems in determining the liabilities. As per the Niti Aayog report the gig economy is on the rise and towards the end of this decade will touch new heights. Owing to this we need proper legislation in the interest of the gig workers and the other stakeholders involved to safeguard their interests. Further, if any dispute arises in present times in terms of the gig sector it is directly taken to the courts hence increasing the burden on the court system. The presence of specific legislation for this sector will allow the introduction of a specific dispute resolution system which could be resolved through alternative dispute management or the medium of the specific gig sector tribunals.
Hence to summarise the demand for the legal framework for the gig economy the key factors involved are clarity & certainty, worker protections, fairness & equity, regulatory compliance and adaptation to changing workforce dynamics. Scope of contracts in the gig economy "Contracts are the foundation of civilized society, providing structure and clarity to agreements between parties. " Contracts play a crucial role in our daily lives, with individuals often entering into numerous agreements throughout their lifetime. Similarly, in the gig economy, engagement agreements are essential for defining the terms of work between parties in this unregulated sector. These agreements typically include clauses such as Legal Names and Signatures, Scope of Work, Project Deliverables, Delivery Schedule, Commercial Payment Schedule, Ownership of Work, and Termination or Cancellation.
“Given the contract-based relationship, gig workers do not currently possess the specific right to collective bargaining. Collective bargaining, a
fundamental principle of modern labour law, is instrumental in ensuring workers’ rights despite the inequality in bargaining power between employers and employees. ”10 However, the current contracts in the gig economy often lack sufficient provisions to address the needs of stakeholders and resolve disputes effectively. Due to the absence of a specific legal framework, engagement contracts serve as the primary basis for transactions, making it imperative to include provisions that address liability and dispute resolution. By incorporating specific contract clauses into the main agreement, stakeholders can ensure a more comprehensive and self-sufficient contract, facilitating better understanding and resolution of disputes in gig economy transactions.
Application of Specific Contracts to overcome the challenges involved in this sector Indemnity The contract of indemnity means some sort of protection against any recoverable loss. The concept related to indemnification finds its place in sections 124 and 125 of the Indian Contract Act 1872. As it is clearly stated in section 124 of the Indian Contact Act 1872 indemnity is something which safeguards the promisee from any loss which occurs to the promise out of the contact between the promisor and the promisee, in addition, it also provides for the safeguard to the promisee by the promisor on account of any actual loss which occurred to the promise due to the conduct of any third person. As per section 125 of the Indian Contract Act 1872, an indemnity holder has the right to recover any losses incurred in a lawsuit related to the subject specified in the agreement.
This includes reimbursement for all expenses associated with initiating and defending the legal action. Additionally, the indemnity holder can claim any payments made under a consent decree related to the claim. However, any reimbursement must be in accordance with the wishes of the indemnifier, reasonable, and permitted by them. Considering indemnity in the context of gig economy workers provides clarity. The inclusion of an indemnity clause or a separate indemnity contract in the contractual relationship between
10 Sahaj Mathur, Labour Law and the Gig Economy: Towards a Hybrid Model of Employment.
gig workers and platforms would enhance the smooth operation of this economy. Suppose a gig worker enters into an indemnity contract with the gig platform/firm. In that case, the gig worker will be protected from any actual loss that occurs to him within the scope of employment, whether it is abrupt termination of the contract by the employer or the client, or damages suffered by the employee while working for the employer equipment insurance policy, indemnification in case of the client taking legal actions against the employee, so the gig worker shall provide with the indemnification. For example, consider an OLA cab driver to illustrate this concept. Currently, OLA cab drivers are not indemnified in the event of an accident during their duty.
However, if such a clause were included in their contract, it would address issues related to income stability, employment benefits, and legal protection. Accidents can result in various legal, health, and job-related risks for drivers. Indemnification by the platform or company would enable drivers to thrive more effectively. The lack of proper medical benefits, legal protections, and paid leave for drivers involved in accidents significantly impacts the worker's side of the gig economy and can lead to their exploitation. This is contrary to their basic rights, particularly considering that many are the primary breadwinners for their families or are supporting themselves and their families. The precedent set by the landmark case Adamson v Jarvis11 underscores the significance of following the directions of the promisor, leading to the indemnification of the promise.
This principle highlights that while obeying the promisor's instructions if any actual loss is incurred, indemnification should be provided accordingly. Additionally, it is suggested that gig workers be safeguarded against potential risks such as sexual harassment and cybercrimes. Similarly, platforms should receive limited indemnification from workers to ensure fair bargaining power. This may involve compensating platforms for losses if a worker leaves a task unfinished or refuses to complete it, as well as indemnifying them for the loss of trade secrets, including instances of moonlighting. Guarantee Section 126 – 147 of the Indian Contract Act, 1872, has provisions related to the guarantee. A contract of guarantee under the Indian Contract Act, 1872, involves three parties: the creditor,
11 Adamson v Jarvis (1827) 4 Bing 66: 5 LJ (os) (CP) 68: 29 RR 503.
the principal debtor, and the surety. The creditor, owed a debt by the principal debtor, seeks assurance of payment or performance from the surety. The surety, upon consent and consideration (benefit of the principal debtor is considered sufficient consideration under section 12712 of the Indian Contract Act, 1872), agrees to fulfil the obligation if the principal debtor fails to do so, with their liability being secondary to the debtor and becoming coextensive in case of default by the principal debtor13. It's a separate contract but dependent on the existence of the underlying obligation, becoming void upon fulfilment by the debtor or resulting in liability for the surety upon default.
Typically, discussions on the gig economy focus heavily on the challenges faced by gig workers and the platforms that facilitate these arrangements but seldom address the difficulties encountered by clients or customers. However, the concept of a contract of guarantee can be applied in this context, where the gig worker acts as the principal debtor, the platform as the surety, and the client as the creditor. If the gig worker fails to deliver, both the worker and the platform share liability co-extensively. However, highlighting the importance of understanding the diverse relationships within the gig economy and tailoring the application of contract guarantees should be done accordingly. Agency A contract of agency under the Indian Contract Act, 1872, establishes a legal relationship where
one party, the principal, empowers another party, the agent, to act on their behalf. This arrangement allows the agent to conduct transactions and make decisions within the scope of their authority, whether specified explicitly in a contract or implied by circumstances. The principal is generally bound by the actions of the agent performed within their authorized capacity, while the agent and the principal have a fiduciary relationship between them. Termination of agency can occur through various means, and both parties may incur liabilities based on their actions. Ultimately, the contract of agency facilitates efficient delegation of authority, enabling effective representation in a variety of matters. The long-standing debate surrounding the classification of gig workers as either employees or independent contractors can find resolution through the concept of a contract of agency,
12 Indian Contract Act, 1872, § 127, Acts of Parliament, 1872 (India).
13 Indian Contract Act, 1872, § 128, Acts of Parliament, 1872 (India).
wherein the gig worker acts as the agent and the platform acts as the principal. Section 18214 of the Indian Contract Act, 1872, outlines the essentials of such a relationship, emphasizing the gig worker's role as a representative of the platform when interacting with clients or customers. This contractual framework protects the rights and duties of both parties, holding them equally accountable within their respective roles. Sections such as 21215 and 22216 of the Act mandate the agent's skill and diligence and ensure their indemnification for lawful acts by the principal, addressing many challenges faced by gig workers operating as independent contractors or employees based on the degree of control. Applying the principles of agency to the gig economy can streamline operations and foster smoother relationships between gig workers and platforms.
The application of the contract of agency in the gig economy offers a structured framework for addressing the complexities of the relationship between gig workers and platforms. Defining the roles and responsibilities of both parties clarifies expectations and mitigates disputes that may arise. Moreover, the provisions outlined in the Indian Contract Act, such as those regarding the agent's duties and entitlement to indemnification, provide a legal basis for ensuring fair treatment and protection for gig workers. Embracing the principles of agency not only streamlines the gig economy's operations but also promotes transparency, accountability, and stability in an evolving landscape. Conclusion As the gig economy continues to flourish, it encounters an array of evolving challenges.
In the absence of centralized legislation, tailored contracts between parties could offer a solution to many of these hurdles. The objective is to integrate specific contracts into gig economy relationships while preserving their inherent flexibility, thereby avoiding its transformation into a conventional economy while incorporating essential security measures. With its emphasis on flexibility and employment opportunities, the gig economy is poised to shape the future positively, contributing to global growth. Moreover, as this sector matures, it necessitates ongoing dialogue and adaptation to address emerging issues effectively. Collaboration between stakeholders, including workers, platforms, and policymakers, is crucial
14 Indian Contract Act, 1872, § 182, Acts of Parliament, 1872 (India).
15 Indian Contract Act, 1872, § 212, Acts of Parliament, 1872 (India).
16 Indian Contract Act, 1872, § 222, Acts of Parliament, 1872 (India).
in fostering a sustainable and equitable gig economy ecosystem that harnesses its potential while mitigating its challenges.